Department of Energy Finalizes Loan Guarantee for New Transmission Project

Energy Secretary Steven Chu announced that the U.S. Department of Energy has finalized a $343 million loan guarantee, supported by the American Recovery and Reinvestment Act, to develop the One Nevada Transmission Line, known as the ON Line project. Previously, Electrical Contractor reported the offer had been made and was conditional.

The ON Line project, which is jointly owned by Great Basin Transmission South LLC, and NV Energy, consists of a new 500-kilovolt (kV) alternating current (AC) transmission line that will carry approximately 600 megawatts of electricity, including from renewable-energy resources, in northern Nevada. This is the DOE’s first loan guarantee for a transmission project, and will help integrate existing transmission systems in northern and southern Nevada, improving grid reliability and efficiency.

“As our country increases its use of alternative-energy sources, new transmissions lines like the ON Line project will play a vital role in moving clean energy from one region to another,” Chu said. “This project will create jobs, increase the reliability of the grid, and save money through greater efficiencies in the grid.”

The ON Line project will run 235 miles from Ely, Nev., to just north of Las Vegas, with a new substation located at the northern end of the line. ON Line represents the first phase of the Southwest Intertie Project (SWIP), which, when fully completed, will carry approximately 2,000 megawatts of electricity and enable wind and solar resources in Wyoming, Idaho and Nevada to power the southwest and California markets. Project sponsors estimate the ON Line project will contract about 85 percent of its parts and labor from U.S. companies and will create approximately 400 construction jobs.